Venezuela's foreign refining cost soars 4.5%
Some USD 68.2 billion are estimated to carry out 11 refining projects
However, according to information provided by Pdvsa's Refining Director Jesús Luongo during the 2nd Comprehensive Congress on Hydrocarbons recently held in Venezuela, cost in foreign refining plans have soared 4.5% as required investments climbed from USD 65.2 billion in 2011 to USD 68.2 in 2012.
For instance, in Brazilian refinery Abreu e Lima, jointly developed by Brazilian state-run oil company Petrobras (60%) and Pdvsa (40%), USD 15.2 billion are required to process 230,000 barrels per day (bpd) as from 2014. Notwithstanding, only USD 13.3 billion were required for said project last year.
To make things worse, as recently reported by Reuters, Petrobras has informed that the aforementioned amount may increase. Furthermore, although the Brazilian oil company has repeatedly expressed its partnership with Pdvsa, the Venezuelan oil company has not invested a single penny in the common project as it still trying to get a loan from Brazilian bank Bndes.
The Brazilian refinery is not the only exception. It also includes projects in Cuba, Nicaragua, and Ecuador.
It has been unveiled that costs in Pacific Refinery Eloy Alfaro in Ecuador, another project Pdvsa takes part in, have also soared in a year's time. While only USD 11.7 billion were necessary in 2011, USD 12.8 billion are required today.
Translated by Jhean Cabrera
José Vicente Rangel clearly said: "We are not conducting negotiations threatened with a gun in the head." He warned behind closed doors in the midst of the social upheaval occurred during the oil strike in 2002 and 2003. Dissenting Timoteo Zambrano answered back that no other option was available: "The thing is that otherwise, you do not negotiate."